Revision: Jan. 24, 2017, 12:47 p.m.
SB 86 - AS INTRODUCED
2017 SESSION
17-0890
08/10
SENATE BILL 86
AN ACT relative to the regulation of banks, trusts, and credit unions by the banking department.
SPONSORS: Sen. Bradley, Dist 3; Sen. D'Allesandro, Dist 20
COMMITTEE: Commerce
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This bill makes various changes to the regulatory authority of the banking department concerning banks, trusts, and credit unions.
This bill is a request of the banking department.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
17-0890
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
AN ACT relative to the regulation of banks, trusts, and credit unions by the banking department.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Annual Audits. Amend RSA 383-A:5-509(a) to read as follows:
(a) The board of directors of a state bank or credit union shall engage a certified public accountant, at least annually, to serve as its auditor and to perform an annual audit. Each state bank or credit union shall give notice to the commissioner of its engagement of an auditor at the time of its engagement and shall require its auditor to confirm the engagement to the commissioner within 30 days of the engagement. Each state bank or credit union shall give notice to the commissioner of the termination of the engagement of an auditor at the time of the termination and shall require the auditor to confirm the termination to the commissioner within 30 days of the termination.
2 Examination. Amend RSA 383-D:11-1101 to read as follows:
383-D:11-1101 Examination. Except as provided in RSA 383-D:11-1102, the commissioner shall examine a family trust company in accordance with [RSA 383:13] RSA 383:9-d and RSA 383-C:7-704.
3 Audits in Lieu of Examination. Amend RSA 383-D:11-1102(a)-(b) to read as follows:
(a) In lieu of an examination, the commissioner may accept (i) a financial audit report made in accordance with [RSA 383-A:5-510] RSA 383-A:5-509 and (ii) a fiduciary compliance audit report that includes a review of each material aspect of the family trust company's management, operations, compliance, and asset management and conforms to applicable generally accepted auditing standards.
(b) A family trust company may apply for an exemption from regular examination under [RSA 383:13] RSA 383:9-d. In determining whether to grant an exemption, the commissioner shall consider (i) the quality of the family trust company's management, operations, compliance, and asset management as determined under any prior examinations and reports described in subsection (a), (ii) the quality, scope, and amount of coverage under the errors and omissions liability insurance policy that the family trust company maintains, and (iii) any other relevant factors affecting the family trust company's safety and soundness. A family trust company exempt from regular examination shall annually file the reports described in subsection (a).
4 Reports and Certification. Amend RSA 383-D:10-1001(a) to read as follows:
(a) In addition to filing an annual report in accordance with [RSA 383-A:5-511] RSA 383-A:5-510, a family trust company shall file with the commissioner an annual certification certifying that the family trust company is in compliance with the provisions of this chapter and the conditions and limitations of all granted exemptions. In its annual certification, a family trust company may change its designated relative in accordance with RSA 383-D:10-1002. The annual certification is due on the same day as its annual report.
5 Material Change in Operating Conditions. Amend RSA 383-A:3-318 to read as follows:
383-A:3-318 Material Change in Operating Conditions. If a board of directors of a state bank proposes to make a material change in the business plan, capital plan, or other factors considered by the commissioner in granting a charter to the state bank within 5 years of its receipt of a certificate to engage in business under RSA 383-A:3-315, then the board of directors may not make the change unless it [gives notice of] submits an application seeking approval of the change to the commissioner as provided in RSA 383-A:6-602 and it is permitted to do so by the commissioner.
6 Redemption of Shares. Amend RSA 383-A:4-404 to read as follows:
383-A:4-404 Redemption of Shares. A state bank may redeem shares of its capital stock if (i) the redemption is conducted in accordance with the provisions of its organizational documents, (ii) the remaining capital exceeds the minimum capital required by this chapter, and (iii) the board of directors determines that the redemption will not jeopardize the safe and the sound operation of the state bank based on a diligent review of all applicable facts and circumstances then known to them. The board of directors shall not make a proposed redemption unless it gives notice of the proposed redemption to the commissioner as provided in RSA 383-A:6-602 [and it is permitted to do so by the commissioner].
7 Banking Business. Amend RSA 383-B:3-301(o) to read as follows:
(o) A depository bank may purchase assets from and assume the liabilities of, or sell assets and transfer liabilities to, banks, credit unions, federal credit unions, and foreign credit unions if it files a notice with the commissioner under RSA 383-A:6-602 [and is permitted to do so by the commissioner under RSA 383-A:6-604], subject to other federal or state regulatory approvals.
8 Branching Authority. Amend RSA 383-B:7-702(b) to read as follows:
(b) [A depository bank that is well-capitalized under applicable federal law and has a composite CAMELS rating of at least 2 as a result of its most recent examination by its federal regulatory authority or the commissioner, shall provide the commissioner with written notice of its proposal to establish a new branch office or acquire a branch office as required under RSA 383-A:6-602.] All [other] depository banks shall submit an application to establish a branch office under RSA 383-A:6-602. A depository bank may proceed to establish or acquire the branch office if it is permitted to do so by the commissioner under RSA 383-A:6-604.
9 Branch Closings and Relocations. Amend RSA 383-B:7-703 to read as follows:
383-B:7-703 Branch Closings and Relocations.
(a) A depository bank may close a branch office upon the affirmative vote of a majority of its board of directors, but the closing shall not occur until the depository bank has filed notice of the branch office closing with the commissioner under RSA 383-A:6-602 [and it is permitted to do so by the commissioner under RSA 383-A:6-604]. The depository bank shall be required to comply with federal requirements for branch closings.
(b) A depository bank may relocate a branch office upon the affirmative vote of a majority of its board of directors, but the relocation shall not occur until the depository bank has filed notice of the branch office relocation with the commissioner under RSA 383-A:6-602 [and it is permitted to do so by the commissioner under RSA 383-A:6-604]. The depository bank shall comply with federal requirements for branch relocations.
10 Interstate Establishment or Acquisition of Branch Offices by Depository Banks. Amend RSA 383-B:10-1004 to read as follows:
383-B:10-1004 Interstate Establishment or Acquisition of Branch Offices by Depository Banks.
(a) A depository bank may establish a branch in any state or may acquire one or more branch offices of a foreign bank in any state under federal law and the laws of the other state. The depository bank shall be required to follow all procedures and to obtain all approvals necessary to establish or acquire a branch office under New Hampshire law. [The depository bank shall provide the commissioner with written notice of the proposed establishment or acquisition of a branch as required under RSA 383-A:6-602 and file with the commissioner a copy of each application or notice filed with federal or other state regulatory authorities relating to the transaction at the same time such application or notice is filed with such federal or other state regulatory authorities. A depository bank may proceed to establish or acquire the branch if it is permitted to do so by the commissioner under RSA 383-A:6-604.] The depository bank shall have all the powers under the laws of the state in which each branch office is located, subject to the duties and restrictions thereof. In addition to any regulation by regulatory authorities in the state where a branch office is located, each branch of the depository bank located outside of New Hampshire shall be subject to regulation by the commissioner as if such branch office were located in New Hampshire and shall comply with New Hampshire law in the conduct of its banking business in such other state unless otherwise required or permitted under the laws of such other state.
(b) A foreign bank may establish one or more new branch offices in New Hampshire or may acquire one or more branch offices from a depository bank or a national bank or federal savings bank having its principal place of business in New Hampshire. The foreign bank shall be required to obtain all approvals necessary to establish or acquire a branch office under RSA 383-B:7-702. No branch office may be established or acquired if it will result in a violation of the deposit limitation contained in RSA 383-B:7-702(a). The foreign bank shall [provide the commissioner with written notice of the proposed establishment or acquisition of a branch office as required under RSA 383-A:6-602 and] file with the commissioner a copy of each application or notice filed with federal or other state regulatory authorities relating to the establishment or acquisition of a branch office or branch offices at the same time such application or notice is filed with such federal or other state regulatory authorities. [A foreign bank may proceed to establish or acquire the branch if it is permitted to do so by the commissioner under RSA 383-A:6-604.] The foreign bank shall have all the powers held by a depository bank with respect to the operation of the branch office or branch offices located in New Hampshire under New Hampshire law, subject to the duties and restrictions thereof. Each branch office located in New Hampshire of a foreign bank, other than a national bank or federal savings association, shall be regulated by the commissioner as if the branch office were a branch office of a depository bank. Any foreign bank having a branch office located in New Hampshire shall comply with New Hampshire law in the conduct of its banking business in New Hampshire. No branch office of a foreign bank shall be permitted to engage in any activity not permissible for a depository bank. Notwithstanding the foregoing, if the foreign bank is a national bank or a federal savings association, it shall comply with New Hampshire law to the maximum extent allowed under federal law.
11 Opening or Relocation of Trust Office. Amend RSA 383-C:7-702 to read as follows:
383-C:7-702 Opening or Relocation of Trust Office. Before opening or relocating a trust office, other than an opening or relocation that is expressly provided in the trust company's business plan approved by the commissioner, a trust company [that, under the MOECA components under the Uniform Interagency Trust Rating System, has a composite rating of at least 2 as a result of its most recent examination by the commissioner, shall provide the commissioner with written notice of its proposal to open or relocate a trust office as required under RSA 383-A:6-602. All other trust companies] shall submit an application to establish a trust office under RSA 383-A:6-602. A trust company may proceed with the opening or relocation of the trust office if permitted by the commissioner under RSA 383-A:6-604.
12 Trust Office. Amend RSA 383-C:11-1102(a) to read as follows:
(a) Before opening or relocating a trust office within this state, a foreign trust company shall submit notice to the commissioner describing the opening or relocation under RSA 383-A:6-602. [A foreign trust company may only proceed with the opening or relocation of a trust office if permitted to do so by the commissioner under RSA 383-A:6-604.]
13 Amendment of Bylaws. Amend RSA 383-E:3-311 to read as follows:
383-E:3-311 Amendment of Bylaws. The board of directors of a credit union may, by majority vote, amend the bylaws if the credit union files[ a notice of] an application describing the proposed amendment under RSA 383-A:6-601 and it is permitted to do so by the commissioner based on the considerations set forth in RSA 383-E:3-301, as applicable.
14 Material Change in Operating Conditions. Amend RSA 383-E:3-312 to read as follows:
383-E:3-312 Material Change in Operating Conditions. If a board of directors of a credit union proposes to make a material change in the strategic plan, funding plan or other factors considered by the commissioner in granting a charter to the credit union within 5 years of its receipt of a certificate to engage in business under RSA 383-E:3-310, the board may not make such change unless it [gives notice thereof] submits an application seeking approval of the change to the commissioner as provided in RSA 383-A:6-602 and it is permitted to do so by the commissioner.
15 Transactions Involving Assets and Liabilities. Amend RSA 383-E:4-417 to read as follows:
383-E:4-417 Transactions Involving Assets and Liabilities. A credit union may purchase assets from and assume liabilities of, or sell assets and transfer liabilities to, a bank, state credit union, federal credit union, or foreign credit union if it files an application with the commissioner under RSA 383-A:6-602 [and is permitted to do so by the commissioner under RSA 383-A:6-604], subject to other federal or state regulatory approvals.
16 Branching Authority. Amend RSA 383-E:9-901(b) and (c) to read as follows:
(b) [A credit union that is well capitalized under applicable federal law and has a composite CAMELS rating of at least 2 as a result of its most recent examination by its federal regulatory authority or the commissioner, shall provide the commissioner with notice of its proposal to establish or acquire a branch office as required under RSA 383-A:6-602.] All [other] credit unions shall submit an application to establish a branch office under RSA 383-A:6-602. A credit union may proceed to establish or acquire the branch office if it is permitted to do so by the commissioner.
(c) A foreign credit union may establish or acquire a branch office in this state if a state credit union would be permitted to do so in the state in which its principal office is located under conditions no more restrictive than those imposed by the laws of this state as determined by the commissioner. The foreign credit union shall submit [a notice or] an application to establish or acquire a branch to the commissioner under RSA 383-A:6-602 and may proceed to do so if permitted by the commissioner.
17 Branch Closings and Relocations. Amend RSA 383-E:9-902 to read as follows:
383-E:9-902 Branch Closings and Relocations.
(a) A credit union may close a branch office upon the affirmative vote of a majority of its board of directors, but the closing shall not occur until the credit union has filed notice of the branch office closing with the commissioner under RSA 383-A:6-602 [and it is permitted to do so by the commissioner]. The credit union shall be required to comply with federal requirements for branch closings.
(b) A credit union may relocate a branch office upon the affirmative vote of a majority of its board of directors, but the relocation shall not occur until the credit union has filed notice of the branch office relocation with the commissioner under RSA 383-A:6-602 [and it is permitted to do so by the commissioner]. The credit union shall be required to comply with federal requirements for branch relocations.
18 Effective Date. This act shall take effect 60 days after its passage.